In today's technology-driven business world, organizations
are more vulnerable than ever to cybersecurity threats such as data
and privacy breaches. As a result, in the context of M&A
transactions, assessing the cybersecurity posture of a target
entity has become a key due diligence consideration for buyers.
Depending on the target's operations and the industry in which
it operates, the level of cybersecurity due diligence may vary. As
a starting point, we outline below five key cybersecurity
considerations when it comes to evaluating a target entity's
overall cybersecurity posture.
1. COMPLIANCE WITH PRIVACY AND DATA PROTECTION LAWS
In recent years, not only has there been a proliferation of
privacy and data protection laws (domestically and globally), but
we have seen regulators engaging in greater enforcement. With this
backdrop, a due diligence exercise should first determine which
laws apply to the target and, where necessary, challenge why the
target has
